Andrew Forliti of CohnReznick presented an audit review for the city of Houston, Minn., at its regular city council meeting on March 9. An unmodified “clean” opinion was issued. In his review, Forliti shared that the general levy was up $24,000 from the previous year, a 3% increase. Most of the increase was for the vehicle fund and the infrastructure fund.
Forliti pointed out that the LGA (local government aid which is based on a state legislature approved formula) had only increased by $426 for 2025 and is expected not to increase much for 2026; as a result, since the state has not kept up with its funding, Houston will need to spend more.
For 2025, general fund expenditures were under budget by $166,356. That excess was transferred to the infrastructure fund for future projects. The Nature Center Fund has worked itself out of deficit. The Ambulance Fund was down by $6,747 due to the purchase of life pack monitors.
The general obligation bonds will soon be getting paid off. City Administrator Michelle Quinn noted that this was good because more bonding would need to be done for the upcoming Spruce Street project.
Both the water and sewer funds showed small deficits, but are covering operating costs, debt service,and their share of administrative costs.
The general fund unassigned balance represents 52% of general fund expenditures. The target percentage is 50%. All special revenue funds show positive balances. The infrastructure construction capital projects fund has a balance of $751,162 for future projects.
Ambulance Staffing
After discussion, the board decided it was necessary to put a minimum requirement on the amount of time that would be required of ambulance personnel. The minimum time expected of each person on the crew will be eight shifts or a total of 96 hours as well as attendance at 75% of the training meetings.
Quinn pointed out that the city pays PERA and other benefits for each person. She noted that some members of the crew put in many more hours, but some signed up for very few.
Danny Todd said he felt this requirement was a good thing to do. He commented that when new crew members are recruited, they will know what time commitment there will be.
Quinn will visit the March ambulance meeting to share the requirements with the crew. “It’s a way to see who’s committed and who’s not,” she commented. “It’ll help to refocus the energy.”
There may be some simple things that can be adjusted according to Quinn, such as the keypad entries that are difficult to use, the lifepack interface that is not working smoothly and the scheduling module that needs improvement.
Contracts Approved
The council approved a contract with Straight Edge Construction, a local company, to build a wall and storage area at the community center. This will create a storage area for table and chair carts so they are not in the rented usable area of the center. Space will be taken from the police garage, but a mezzanine will be created, giving storage space back.
Chief Hurley pointed out that this would cause less heat/cooling to be lost when the garage doors are opened. With a stair access to the mezzanine, PWD will be able to access the furnace area for the building more easily.
The construction will create a 10’ by 22’ storage area for tables and chairs and provide more usable space for people renting the center. The city has money available for the $50,202 project.
MDH (Minnesota Department of Health) recommends pulling city wells every five to seven years. The city well has been in use for seven years now. Quotes were obtained from two vendors for the work. A local contractor, Gary’s Pump and Well, submitted the low bid of $16,970. This company had also included a list of current replacement costs if they are needed so the city would know possible expenses.
Quinn told the council that the city had funds available to complete this work as well.
Other Business
In other business the council members:
- Passed a resolution to approve the submission to MDH for plan certification for lead service line replacements;
- Learned that staff would be meeting on March 12 about the Stoddard Street project with Bolton & Menk;
- Heard that the county was advertising for bids for the Spruce Spruce Street project; a neighborhood meeting will be held the week of May 4 with an assessment meeting to be held May 11;
- Were encouraged by Quinn to read letters from the DNR regarding the OHV Trail; these letters were included in the council packet for the meeting.
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